Rupee declined for the third straight session, tumbling 50 paise to settle at 86.26 against the US dollar on Tuesday, according to the interbank foreign exchange rates.
This was the maximum single-day loss in nearly three months amid a looming global trade war stoking fears of economic meltdown.
The local currency had earlier recorded such a steep loss in one session on January 13 this year, when it had depreciated by 66 paise. According to forex traders, some recovery in crude oil prices and continued foreign capital outflows also dented sentiments.
At the interbank foreign exchange, the Indian currency opened at 85.89 and swung between a high of 85.82 and a low of 86.29 against the greenback. The unit ended at 86.26, registering a loss of 50 paise from its previous closing level.
However, as per RBI reference rate, rupee settled at 85.90 against the US dollar.
On Monday, the rupee settled 32 paise lower at 85.76 against the US dollar, after losing 14 paise in the preceding session on Friday.
“The rupee experienced a decline in value against the US dollar, primarily driven by strong demand for dollars from importers and ongoing outflows of foreign funds from Indian equity markets,” forex traders said.